In mid-December 2007, MEMSIC Semiconductor went public in the United States. It was the fourth domestic IC design company to be listed on NASDAQ. The previous three were VIMC, ACTS and SPRD. Although the timing of the listing was not good, it represented the recognition of the capital market after all. Thanks to the Internet, we have the ability to review the journey of these companies from start-up to listing, and feel the hardships and vitality of this emerging industry. VIMC This is the first listed IC design company. It was listed on November 15, 2005. The IPO totaled 6,750,000 ADSs, and shareholders sold 1,947,063. Each ADS is equal to 4 common shares. The price per share is 10 yuan, and the brokerage fee is 0.7 yuan/share. The actual financing is 9.3 * 6750000 = 62,775,000 US dollars. The total number of shares of the company is 138,606,027. Company value: 138.6M /4 *10 = 346M. 1. Pre-IPO sales and profits 2. Industry technology information Foundry: mainly TSMC. Fujitsu and SMIC are also selected as the second resource. Packaging and testing: mainly ASE, ASAT as the second resource. Process: 0.25um, 0.18um, 0.13um. Purchased licenses: none (?). Top 10 customers: 80% in 2002; 74% in 2003; 89% in 2004; 82% in 2005. Government funding: US$1.3 million in 2002; US$2.5 million in 2003; US$2.1 million in 2004; US$0.4 million in 2005. Tax incentives: high-tech enterprises, two exemptions and three reductions. VAT above 3% is refundable immediately. Competitors: Digital cameras: Ali; EMPIA; Sonix; Sunplus; Philips. Mobile multimedia: Oki Electric, Rohm, Sunplus; Winbond; Yamaha; ATI, CoreLogic, MtekVision, Nvidia, Sanyo, Seiko Epson In the future: ADI; Broadcom, Freescale, Infineon, Intel, Mediatek, NEC, Philips, QUALCOMM, ST, TI. Three executives and entrepreneurs The IC industry is known as an industry for talents, because the product cycle is long (basically three years to start sales), the accumulation of talents and knowledge is the top priority in the industry. For the three companies, going public means that they have already succeeded one step, let's take a look at these heroes. VIMC's importance to its employees is relatively clear. Among the company risks, it was specifically mentioned that the departure of the six most important personnel had a huge impact on the company: Deng Zhonghan/Yang Xiaodong/Jin Zhaowei/Zhang Hui/Zhang Yundong/Zhu Jun Deng Zhonghan (John) Deng 37 Chairman of the Board, CEO, Chairman Yang Xiaodong (Dave) Yang 36 Director, CTO. Hui (Tom) Zhang 32 Director, VP of Business Development Zhaowei (Kevin) Jin 36 Director, COO, VP of sales Xiaosong (Jonathan) Zhang 41 CFO, VP of Accounting Yundong (Raymond) Zhang 37 VP of Marketing Jun Zhu 44 VP of Engineering Qing (Mike) Yu 34 VP of Algorithms and Software Changyong (Robert) Chen 53 Independent Directors Theodore Van Duzer 77 Independent Director (with background in California, Berkeley) Vince Feng 33 Director (Manager Director of General Atlantic LLC) Donald L. Lucas 75 Independent Director (VC in his personal capacity) Victor Yang 58 Director (President of Power Pacific in Hong Kong) Among them, Deng Zhonghan, Yang Xiaodong, Zhang Hui and Jin Zhaowei are the founders. Zhang Yundong joined in 2001, Zhu Jun joined in 2000, and Yu Qing joined in 2001. They should be considered as senior management who joined early. Four founders joined the board of directors. Four share distributions In the early stage, Vimicro was established as a Chinese enterprise. Later, in order to go public, it adopted the method of establishing a holding company overseas to purchase the full amount. We know that: 1. Initially, Infortech invested 10 million RMB, accounting for 65% of Vimicro's shares. But there is a very powerful restriction, that is, the capital increase in the future will ensure that the proportion of 35% of the entrepreneurial team remains unchanged. From the SEC filing, it is mentioned that the stock value at this time is 0.10 US dollars, and the entrepreneurial team has a total of 6,725,000 shares with a total value of 650,000. 2. In 2000, it received an investment of 3.5 million US dollars from PPL (Power Pacific (Mauritius) Limited) of Canada. This is the second round, and the entrepreneurial team has increased 15,150,000 shares again, with a total value of $3,102,000. The stock value at this time is 0.27 US dollars. 3. In 2001, the company received the third round of financing. The specific proportion and amount of this round are unknown. At this time, the entrepreneurial team received 6,876,250 shares with a total value of 3,609,000. At this time, the stock value was 0.53 US dollars. 4. The fourth round was private placement. The specific proportion and amount are unknown. The time should be around the end of 2002. 5. The fifth round was corporate strategy investment from General Atlantic Partners of the United States and Fujitsu of Japan, with a total of about 25 million US dollars. The time was October 2004. There were a total of 15,217,150 shares at a price of $1.5977. 6. In October 2005, the company went public, with a share value of 2.5 US dollars (USD 10/ 4 = 2.5). For the founder, because he always maintained 35% of the shares in the early stage, in the third round of financing in 2001, a total of 28.800,000 shares were given to the founder. It can be said that the founder was worth about 15M two years later. (Although the initial net worth was only $650,000, the 35% clause guaranteed the benefits of the second/third round of financing. It can be converted into a value of 7M.) Finally, before the IPO: Deng Zhonghan held 13,179,490 shares, accounting for 11.8%. Yang Xiaodong held 8,347,110 shares, accounting for 7.4%; of which 1.2M were options. Zhang Hui held 6,351,600 shares, accounting for 5.7%; of which 1.6M were options. Jin Zhaowei held 5,306,600 shares, accounting for 4.8%; of which 1.6M were options. Conclusion: In the early days of the company, although the founder had only $650,000 in net worth, the 35% clause made his final net worth account for about 35% of the shares. When the company went public, the entrepreneurial team + employees held about 35% of the shares. In addition, there were about 28M options for employees at all levels. 5. Return to Initial Investors: 25 Times in 6 Years ACTS went public on December 1, 2005, two weeks after Vimicro. The IPO had 6,000,000 shares, and shareholders sold 3,000,000 shares, for a total of 9 million. Each ADS is equal to 6 common shares. The price per share is 8 yuan, and the brokerage fee is 0.56 yuan/share. The actual financing is 7.44* 6000000 = 44,640,000. 44.64 million US dollars. The total number of shares in the company is 516,000,000. Company value 516M /6*8 = 688M. 1. Sales and profit 2. Industry technology information Foundry: Hejian. (Basically unique) Packaging and testing: Multiple. Three places in China, Hong Kong and Taiwan. Process: 0.25um, 0.18um. Purchased licenses: purchased MP3 from Thomson; DRM, from Microsoft; surround sound from SRS Labs; CPU core from MIPS Technologies Top 5 customers: 82% in 2004; 78% in 2005. Government funding: None. Tax incentives: High-tech enterprises, two exemptions and three reductions by half. Competitors: Currently: ALi, Broadcom, Philips Semiconductor, PortalPlayer, Samsung, SigmaTel, Sunplus, Rockchip, Telechips, and TI Cost structure: Wafer: 53.8% of costs in 2004; 68.6% in 2005; 72.8% in 2006 Packaging: 15.5% in 2004; 15.0% in 2005; 16.7% in 2006 Patent fees: 22.5% of costs in 2004; 13.6% in 2005; 8.5% in 2006 Three executives and entrepreneurs are absent from this group. Mr. Zhao Guangmin, the former general manager of ACTS, is absent, so the rumors in the industry that Zhao was purged by the capital are not groundless. Actions is the original team of Zhuhai Yali (the R&D department of the Taiwan company). Li Shaochuan should be said to have entered the board of directors as a representative. Mr. Zhao Guangmin died in a car accident in 2007 and was replaced by the funding party before ACTS went public, which highlights the helplessness of the local people. In 2006, he founded his own company, Complete Electronics. It can be said that “dying before achieving one’s goal often makes the hero shed tears.” Kang, Byung-Jin (Peter) 56 Director, Chairman of the Board Chiu, Tzu-Yin 49 Director Tien, Hui-Dong (Terry) 46 Director Lin, Yu-Hsin Casper 59 Director Li, Shao Chuan (Shawn) 37 Director, CTO Hsiao, Paul 33 Director (NEA background) Yeh, Nan-Horng 47 CEO Lee, Hsiang-Wei 46 CFO Pai, Chih Kang 37 Head of Finance Gong, Hui 38 General Manager — Manufacturing Department Chen, Qiang 44 General Manager — Energy Metering Department Background of Four Shareholding Distribution Actions Group was originally the mainland R&D department of a Taiwanese company, which was later injected with capital to make it an independent accounting company. The information we have seen so far: 1. When it was converted to BVI, the total cost was US$5 million, which can be regarded as the amount of its first financing. 2. Then in September 2005, it raised US$95,889,905 at a price of US$0.833, with 115,113,930 shares. 3. At the time of IPO in October 2005, each share was worth US$1.333. The exact number of shares held by its founding team is unclear, but it is stated in the declaration that: All its employees hold 8.09% of the shares. （8.09% of our total shares outstanding held by four British Virgin Islands companies on behalf of 47 of our employees.） Surrey Glory Investments Limited Zhao Guangmin et al. 17,549,440 3.66% Cheshire Red Investments Limited Zhu, Wenge et al. 10,977,664 2.29% Cumbria Universal Corporation Limited Cai, Jian Yu et al. 8,990,208 1.87% Anglia Fortune Limited Luk, Wai Kwan 1,291,776 0.27% Total 8.09%. Conclusion: The Actions team holds 8.09% in total, which is much less than the previous two companies. Moreover, Actions only raised funds once before the IPO, so it can be said that the initial investors' shares were diluted very little. It can be said that the initial investors of Actions made a fortune in this IPO. 5. Return of initial investors: 85 times in 4 years Spreadtrum was listed on June 27, 2007. The IPO totaled 8 million ADS. In addition, shareholders sold 992,700 ADSs, making a total of 8,992,700 ADSs. Each ADS is equal to 3 shares of Spreadtrum common stock. The price per share is US$14. The brokerage fee is 0.98 yuan/share. The actual financing is 13.02 * 8,000,000 = 104,160,000, 104 million US dollars. The total number of Spreadtrum shares is 124,328,561 shares, and the company value is 124.3/3 *14 = 580M. 1. Sales and profits 2. Industry technology information Foundry: TSMC (only). Packaging and testing: ASE (only) Process: 0.18um, 90 nm. Licenses purchased: CEVA DSP, Arm core, Sasken software, 3G protocol Chongyou Xinke. Top 5 customers: 52.5% in 2004; 40% in 2006. Government funding: $199,000 in 2004; $1.6 million in 2005; $1.3 million in 2006. Tax incentives: high-tech enterprises, two exemptions and three reductions. Competitors: Currently: ADI; Infineon; MediaTek; TI; In the future: Broadcom; Freescale; NXP Three executives and entrepreneurs Ping Wu 43 CEO, Chairman Datong Chen 52 CTO, Director Hao Chen 41 Director (Managing Director of Lenovo Capital) Feng Deng 44 Director (Northern Light Venture Capital, founder of netscreen) Jong Hyun Kah 39 Director (VP of SK in South Korea) Yungang Lu 44 Director (APAC Capital) Scott Sandell 42 Director (NEA) Carol Yu 44 Director (CFO of Sohu) Qiang Cao 45 VP of Marketing Renyong Fan 46 VP of Operations.Bin Lu 38 Senior Vice President of Engineering Eva Wang 34 Vice President of Legal Affairs and General Counsel Richard Wei 44 CFO (Silicon Motion, Kongzhong, ASEtest, Chengyun Zhou 45 Vice President of Sales Among them, Wu Ping, Chen Datong and Fan Renyong are the founders, and Lu Bin is a veteran employee. Two founders are on the board of directors. Four share distributions SPRD's financial statements are the most concise, and the shares of the entrepreneurs and the stock prices of each financing are also very clear. In the front, Wu Ping, Chen Datong and Fan Renyong have been listed as the founders. According to the online statement: First round: 2001/6, Fuxin and MediaTek jointly invested about 6.5 million US dollars, and the valuation at this time was 0.45USD. (In the SEC, this paragraph is described as In June 2001, the Company issued 14,385,005 shares of Series A convertible preference shares at $0.45 per share and two warrants to purchase up to 500,000 shares of the Company's Series A convertible preference shares at an exercise price of $0.45 per share for cash proceeds of $6,380,860, net of issuance costs of $92,392.) Second round: November 2002, April 2003, completed the second round of financing of approximately US$20 million, with investors including Fuxin, Pacific Venture Partners, Vertex and Huahong. The stock price at this time was 0.75USD. Third round: March 2004, completed the third round of financing of approximately US$35.2 million, with NEA as the leading investor, and the stock price at this time was US$1.01. Fourth round: September 2006, completed the fourth round of financing of approximately US$19.46 million, with investors including multiple parties, and the stock price at this time was US$2.74. June 2007, Spreadtrum went public, with an IPO share value of US$4.67. (USD 14/3 = US$4.67) For the founders, in April 2001, a total of 11,900,000 shares were given to the founders. The price was $0.0001. Subsequently, a total of 30 million stock options were given to employees year by year. Finally, before the IPO: Wu Ping held 5,493,360 shares, accounting for 5.34%; 2,608,916 of which were options. Chen Datong held 5,276,539 shares, accounting for 5.16%; 2,025,328 of which were options. Fan Renyong held 2,890,972 shares, accounting for 2.86%; 743,750 of which were options. Lu Bin held 1,243,750 shares, accounting for 1.24%; 350,000 of which were options. Conclusion: At the beginning of the company's establishment, the $6.5 million investment accounted for about 60% of the shares. The founder was worth $5.5 million. When the company goes public, the entrepreneurial team + employees hold about 18% of the shares (total shares 100M, team 17.7M); in addition, there are 30M new options for employees. Return to initial investors: 10 times in 6 years. MEMSIC Semiconductor Co., Ltd. is a semiconductor company engaged in manufacturing, research and development and sales of micro-electromechanical integration (MEMS, IC) technology chips. MEMSIC is the world's first inertial sensor company to integrate micro-mechanical systems (MEMS) and mixed signal processing circuits into a single chip, which can be used to measure tilt, tilt, vibration and inertial acceleration. Any application that requires control and measurement of motion is a potential application range for acceleration sensors. Financial data: For details, please see: http://www.sec.gov/Archives/edgar/data/1386198/000119312507257680/ds1a.htm Key management and shareholding ratio Zhao Yang: 44 President, CEO; 9.5％ Huang Feiming: 41 Vice President, General Manager 1.9％ Shang Hsiao: 46 CFO Patrick Chiumiento: 57 Vice President of Marketing Gary O'Brien: 43 Vice President of Engineering Patricia Niu: 40 Vice President of Finance Major institutional shareholders: Still River Fund II LP 2,878,107 15.7% Entities affiliated with InveStar Capital, Inc. 2,508,014 13.7% Celtic House Venture Partners Fund IIA LP 2,951,555 16.1% Jason Fang 1,125,000 6.1% Entities affiliated with the CID Group(8) 925,000 5.0% Total 10,387,676 56.6% Comparison of financing amount of Vimicro and Spreadtrum: Spreadtrum has the most financing, Actions has the least. Company value: Actions has the highest financing, Vimicro has the lowest. Ability to make money: Actions is the best at making money, Vimicro is the worst R&D investment: Spreadtrum has the most, Actions has the least Corporate management expenses: Actions has the lowest, Vimicro has the highest Marketing expenses: Actions has the lowest, Vimicro has the highest Government funding: Vimicro has the highest, Actions has no foundry:Spreadtrum and VIMC chose TSMC, and ACTS chose Hejian. This one is a bit unexpected. Because SMIC was established in Shanghai that year and was regarded as the cornerstone of the IC industry in mainland China. Only Vimicro handed over a small part to SMIC, indicating that SMIC's strategy of localization was not well implemented. Perhaps because these three companies are considered to be early established companies in the IC industry, we will wait for more financial statements from Chinese companies to judge whether SMIC's role may not be so important. Packaging and testing: Spreadtrum and Vimicro both chose ASE (Advanced Semiconductor). Actions has a variety of choices due to price pressure and packaging types. ASE's localization is considered a success. Technology: ACTS started earlier and uses 0.25 and 0.18 technology; VIMC has begun to turn to 0.13um, and ACTS is a bit behind in this regard. Spreadtrum has reached 90nm in technology, which is the most advanced. (Technology and cost structure are closely related) Intellectual property purchase: It is strange that VIMC did not list any of them, which should be there in theory. At least for CPU, Spreadtrum lists ARM, and ACTS lists MIPS. Summary: Spreadtrum and VIMC are both considered overseas companies, while ACTS is considered a local company. From the above, ACTS's performance is also quite good; it can be seen that overseas companies and local companies are both self-reliant and have no regrets in starting a business. ACTS, a local company, did not seek government funding, perhaps because officials are afraid of foreigners and private companies are afraid of officials, or it may just be a coincidence. In terms of technical content, Spreadtrum should be higher than VIMC, but VIMC received the most funding, which shows that fooling is also a skill. VIMC's headquarters is in Beijing, Spreadtrum is in Shanghai, and Actions is in Zhuhai. The distance to Beijing is inversely proportional to the funding, which shows that there is a lot of money under the emperor's feet, which gives entrepreneurs some food for thought. In addition, it can be found that when the company's sales are 50M-100M US dollars, it can start to consider the listing steps. According to VC, a 5-fold return in 5 years is the standard for a successful company. Spreadtrum: 10 times in 6 years. A successful company. Vimicro: 25 times in 6 years. An extremely successful company. Actions: 85 times in 4 years. A very successful company.
提升卡
变色卡
千斤顶
京公网安备 11010802033920号
